Free Life Insurance Needs Calculator
Determine how much life insurance coverage you need based on income replacement, debts, and future expenses.
Total Coverage Needed
$1,050,000
Total Coverage Needed vs Years of Income to Replace
How to Calculate Life Insurance Needs
The income-replacement method adds up:
1. Income replacement: Annual salary multiplied by the number of years your dependents need support 2. Debt payoff: Mortgage, car loans, credit cards, student loans 3. Future obligations: College tuition, childcare, funeral costs
Subtract any existing coverage to find your gap.
Rule of Thumb
Many advisors suggest 10-12 times your annual income, but a detailed calculation is more accurate.
Example Calculation
$75,000 income, 10-year replacement, $200,000 debt, $100,000 future expenses, no existing coverage.
- 01Income replacement = $75,000 x 10 = $750,000
- 02Add debts = $750,000 + $200,000 = $950,000
- 03Add future expenses = $950,000 + $100,000 = $1,050,000
- 04Subtract existing coverage ($0) = $1,050,000 needed
Frequently Asked Questions
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